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Old 6th Nov 2018, 20:40
  #14 (permalink)  
Join Date: Nov 2008
Location: Darkest Surrey
Posts: 5,860
Originally Posted by Pontius Navigator View Post
Sending the keys to the lender does not seem very sensible as it will have an adverse effect on both parties credit worthiness.
Only for a period of 6 years from date of last missed payment BUT a lender is not going to take a hit on a property if they can go after either or both parties and they will so if he has no money then she will end up paying.

The 100k valuation is junk in a forced sale by Mortgagees in posession.................... potentially need to knock 20k off this as they will add on costs and it is a forced sale.
The Quid pro quo as mentioned earlier is what does she get for taking on extra debt............... don't do it unless compensated.
If as posted the equity split means he gets a minumum payment then take it.

Despite no bank willing to offer a Capital and Interest Mortage there is Zero to prevent a standing order being set up to pay capital.
Rough guess is that its a 4-5% mortgage with rent 7-800 so probably just covers the mortages and fees with zero voids.
Any profit made on property then pay it to lender to reduce balance.

Reckon if she pays any profit plus sets up 250 a month standing order then ultimately it will help her position in the flat and assumming
inflation and 20 years she shoould have a decent sized savings pot by it.
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